This was the first step of the British government to control and regulate the affairs of the East India Company in India. This Act laid the foundation for central administration in India.
Features of the Act:
Governor General of Bengal:
Designated as ‘Governor General of Bengal’.
The First Governor General was Lord Warren Hastings.
Governor of Bombay and Madras presidencies were made subordinate to the Governor General of Bengal. Thus the act brought in a centralising tendency in the affairs of the company).
An Executive Council of four members is created to advise the Governor General. They were required to function according to the majority rule.
A Supreme Court was established in Bengal
With Original and Appellate Jurisdictions
One Chief Justice and three other Judges.
Private Trade: Prohibited servants from engaging in any private trade and also accepting presents or Bribes from the ‘natives’.
The Court of Directors (governing body of the company) was to report on its revenue, civil and military affairs in India to the British Government. Thus for the first time, the British cabinet was given the right to exercise control over Indian affairs.)